CSB Bancorp, Inc. (OTC Pink: CSBB) today announced fourth quarter 2016
net income of $1,953,000, or $.72 per basic and diluted share, as
compared to $1,607,000, or $.59 per basic and diluted share, for the
same period in 2015. For the twelve month period ended December 31, 2016
net income totaled $6,738,000, compared to $6,022,000 for the same
period last year, an increase of 12%.

Annualized returns on average common equity (“ROE”) and average assets
(“ROA”) for the quarter were 11.76% and 1.17%, respectively, compared
with 10.41% and 0.98% for the fourth quarter of 2015. ROE and ROA for
the full year of 2016 were 10.44% and 1.03%, respectively, compared with
10.07% and 0.95% for the same period in 2015.

Eddie Steiner, President and CEO stated, “We are pleased to report
strong fourth quarter earnings. Demand for business and consumer loans
in our markets has improved for several quarters as compared to prior
year levels, resulting in a higher level of earning assets.”

Revenue, on a fully-taxable equivalent basis, totaled $7.1 million
during the quarter, a 13% increase from the prior-year fourth quarter.
Net interest income increased $758 thousand, or 15%, in the fourth
quarter of 2016 compared to the same period in 2015. Loan interest
income including fees increased $910 thousand during fourth quarter 2016
as compared to the same quarter in 2015. This increase was driven
partially by $418 thousand of one-time loan interest recovery, purchase
discount, and premium recognition on loans being paid off as well as an
increase in average loan volume of $55 million across all categories of
loans. The net interest margin of 3.83% compared favorably to 3.39% for
fourth quarter 2015. Excluding the one-time events of $418 thousand,
fourth quarter 2016 net interest margin would have been 3.57%.

Noninterest revenue increased by $41 thousand, or 4%, in the fourth
quarter of 2016 compared to 2015. The increase reflects growth in the
gain on sale of mortgage loans, increases in debit card fee income, and
service charges on deposit accounts. The increases were partially offset
by a decrease in trust and brokerage fee income.

Noninterest expense amounted to $4 million during the quarter, an
increase of $280 thousand, or 7%, from fourth quarter 2015. The
Company’s fourth quarter efficiency ratio amounted to 58.6% as compared
to 61.6% for the same quarter in the prior year. Salary and employee
benefits rose $186 thousand, or 8%, on a quarter over prior year quarter
with increases in salary, healthcare, and employment taxes.

Average total assets during the quarter amounted to $664 million, an
increase of $11 million, or 2%, above the same quarter of the prior
year. Average loan balances of $464 million increased $55 million, or
14%, from the prior year fourth quarter while average securities
balances of $134 million decreased $28 million, or 17%, as compared to
fourth quarter 2015.

Average commercial loan balances for the quarter, including commercial
real estate, increased $32 million, or 12%, from prior year levels.
Average residential mortgage balances increased $15 million, or 19%,
over the prior year’s quarter. Average home equity balances increased $4
million, or 10%, and average consumer credit balances increased $4
million, or 42%, versus the same quarter of the prior year.

Delinquent loan balances as of December 31, 2016 amounted to 0.68% of
total loans as compared to 0.67% at December 31, 2015. Nonperforming
assets totaled $1.7 million, or 0.35%, of total loans plus other real
estate, an increase of $3 thousand over total loans plus other real
estate at December 31, 2015. The allowance for loan losses amounted to
1.11% of total loans on December 31, 2016 as compared to 1.10% at
December 31, 2015.

Average deposit balances for fourth quarter 2016 totaled $532 million,
an increase of $8 million, or 2%, from the prior year’s fourth quarter.
Within the deposit category, average noninterest-bearing account
balances for the fourth quarter increased by $11 million, or 7%, above
the same period in the prior year. Average interest-bearing checking,
money market, and traditional savings balances increased $5 million, or
2%, from year ago levels, while average time deposit balances decreased
$8 million, or 6%, from fourth quarter 2015. In addition to the changes
in average deposit balances, the average balance of securities sold
under repurchase agreement during the fourth quarter of 2016 decreased
by $1 million, or 2%, compared to the average for the same period in the
prior year. Repurchase agreements, while considered short-term
borrowings, are primarily tied to overnight customer sweep accounts.

Shareholders’ equity totaled $65.4 million on December 31, 2016 with 2.7
million common shares outstanding. The tangible equity to assets ratio
amounted to 9.1% on December 31, 2016, as compared to 8.7% on December
31, 2015. The Company declared a fourth quarter dividend of $0.20 per
share producing an annualized yield of 2.6% based on the December 31,
2016 closing price of $31.00.

About CSB Bancorp, Inc.

CSB is a financial holding company headquartered in Millersburg, Ohio,
with approximate assets of $670 million as of December 31, 2016. CSB
provides a complete range of banking and other financial services to
consumers and businesses through its wholly owned subsidiary, The
Commercial and Savings Bank, with sixteen banking centers in Holmes,
Wayne, Tuscarawas, and Stark counties and Trust offices located in
Millersburg, North Canton, and Wooster, Ohio.

Forward-Looking Statement

This release contains forward-looking statements relating to present or
future trends or factors affecting the banking industry, and
specifically the financial condition and results of operations,
including without limitation, statements relating to the earnings
outlook of the Company, as well as its operations, markets and products.
Actual results could differ materially from those indicated. Among the
important factors that could cause results to differ materially are
interest rate changes, softening in the economy, which could materially
impact credit quality trends and the ability to generate loans, changes
in the mix of the Company’s business, competitive pressures, changes in
accounting, tax or regulatory practices or requirements and those risk
factors detailed in the Company’s periodic reports and registration
statements filed with the Securities and Exchange Commission. The
Company undertakes no obligation to release revisions to these
forward-looking statements or reflect events or circumstances after the
date of this release.

CSB BANCORP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

Quarters

(Dollars in thousands, except per share data)

2016

2016

2016

2016

2015

2016

2015

EARNINGS

4th Qtr

3rd Qtr

2nd Qtr

1st Qtr

4th Qtr

12 months

12 months

Net interest income FTE (a)

$

6,022

$

5,597

$

5,539

$

5,373

$

5,262

$

22,531

$

20,758

Provision for loan losses

-

164

165

164

-

493

389

Other income

1,112

1,095

1,097

992

1,071

4,296

4,424

Other expenses

4,210

3,994

4,062

3,989

3,930

16,255

15,796

FTE adjustment (a)

91

100

93

88

89

372

328

Net income

1,953

1,694

1,611

1,480

1,607

6,738

6,022

Diluted earnings per share

0.72

0.61

0.59

0.54

0.59

2.46

2.20

PERFORMANCE RATIOS

Return on average assets (ROA)

1.17

%

1.03

%

1.00

%

0.93

%

0.98

%

1.03

%

0.95

%

Return on average common equity (ROE)

11.76

%

10.29

%

10.14

%

9.48

%

10.41

%

10.44

%

10.07

%

Net interest margin FTE (a)

3.83

%

3.61

%

3.65

%

3.57

%

3.39

%

3.67

%

3.48

%

Efficiency ratio

58.59

%

59.23

%

60.76

%

62.20

%

61.55

%

60.14

%

62.37

%

Number of full-time equivalent employees

165

165

166

162

161

MARKET DATA

Book value/common share

$

23.85

$

23.98

$

23.49

$

22.90

$

22.35

Period-end common share mkt value

31.00

25.17

25.20

24.25

24.50

Market as a % of book

129.98

%

104.96

%

107.28

%

105.90

%

109.62

%

Price-to-earnings ratio

12.60

10.80

11.00

10.78

11.14

Cash dividends/common share

$

0.20

$

0.20

$

0.19

$

0.19

$

0.19

$

0.78

$

0.76

Common stock dividend payout ratio

27.78

%

32.79

%

32.20

%

35.19

%

32.20

%

31.71

%

34.55

%

Average basic common shares

2,742,242

2,742,242

2,742,242

2,741,379

2,739,664

2,742,028

2,739,470

Average diluted common shares

2,742,242

2,742,242

2,742,242

2,741,379

2,741,243

2,742,028

2,742,108

Period end common shares outstanding

2,742,242

2,742,242

2,742,242

2,742,242

2,740,996

Common shares repurchased

0

0

0

0

0

Common stock market capitalization

$

85,010

$

69,022

$

69,104

$

66,499

$

67,154

ASSET QUALITY

Gross charge-offs

$

44

$

346

$

18

$

10

$

104

$

418

$

348

Net (recoveries) charge-offs

(289)

318

14

(179)

(30)

(136)

108

Allowance for loan losses

5,291

5,002

5,156

5,005

4,662

Nonperforming assets (NPAs)

1,684

2,849

2,806

1,915

1,681

Net charge-off (recovery) /average loans ratio

(0.25)

%

0.27

%

0.01

%

(0.17)

%

(0.03)

%

(0.03)

%

0.03

%

Allowance for loan losses/period-end loans

1.11

1.08

1.14

1.15

1.10

NPAs/loans and other real estate

0.35

0.62

0.62

0.44

0.40

Allowance for loan losses/nonperforming loans

314.19

177.61

188.59

261.35

277.35

CAPITAL & LIQUIDITY

Period-end tangible equity to assets

9.07

%

9.34

%

9.19

%

9.11

%

8.69

%

Average equity to assets

9.95

10.02

9.88

9.77

9.38

Average equity to loans

14.25

14.33

14.29

14.63

14.99

Average loans to deposits

87.15

87.89

86.71

83.55

77.95

AVERAGE BALANCES

Assets

$

664,158

$

653,635

$

646,642

$

640,670

$

652,725

$

651,318

$

633,298

Earning assets

625,320

616,555

610,138

604,911

615,725

614,268

596,705

Loans

463,725

456,865

447,009

427,916

408,524

448,941

412,147

Deposits

532,102

519,828

515,511

512,192

524,078

519,941

505,913

Shareholders' equity

66,094

65,471

63,877

62,625

61,230

64,524

59,799

ENDING BALANCES

Assets

$

669,978

$

654,391

$

649,890

$

637,202

$

650,314

Earning assets

631,069

617,264

610,221

602,306

610,251

Loans

475,449

463,211

450,789

433,453

422,871

Deposits

540,785

522,240

516,497

509,980

525,042

Shareholders' equity

65,415

65,751

64,407

62,796

61,266

NOTES:

(a) - Net Interest income on a fully tax-equivalent ("FTE") basis
restates interest on tax-exempt securities and loans as if such
interest were subject to federal income tax at the statutory rate.
Net interest income on an FTE basis differs from net interest income
under U.S. generally accepted accounting principles.

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